10/24/2026
Leasing 101: What is Leasing? 🚗💰
When you lease a car, you aren’t buying the whole vehicle - you are just paying for the part you use. For example: if you sign a two-year, 30 000 km lease, your payments simply cover how much the car depreciates while you drive it.
After a lease agreement is made, a residual value is set based on how much you plan on driving the car during your term. The residual value represents how much a vehicle is worth AFTER accounting for the depreciation incurred by driving it during your leasing term.
At the end of your leasing term, you have the choice to either give car back and not have to pay the remaining residual value, or pay the residual value and keep the car.
Does this make sense? Comment your questions or opinions on leasing vs financing below ⬇️